China's data

The China Caixin/Markit Manufacturing has come in at 53.0, meeting expectation. Prior result was 53.1.

China’s NBS Manufacturing PMI came in at 51.5 for September vs 51 in August. Expectation was 51.2.

China’s NBS Non-Manufacturing PMI came in at 55.9 for September vs 55.2 in August. Expectation was 521.

As a benchmark, PMI readings above 50 signify economic expansion – while anything below 50, signifies economic contraction.

Some key updates from Caixin comments:

• "The recovery in manufacturing has maintained its momentum in the wake of the Covid-19 epidemic, with both the supply and demand surging" 
• "The sharp rise in overseas demand has complemented the domestic market" 
• the job market remains worrisome
• the improvement in employment relies on a longer-term economic recovery and a more stable external environment
• In the near future, great uncertainties remain about the overseas pandemic and the U.S. presidential election

Let’s take a look at how the AUD/USD is faring:

·       The pair’s recovery seems to be consolidating around 0.7135.

·       It seems to be on the verge of a breakout to the upside, which might usher in the bulls.